Reports of Chemical/Chase Merger Occupy Heat-Struck N.Y. Market

BANKS

As the August doldrums set in, the New York FX market has been caught up in bank merger fever. Reports have been circulating the market in recent weeks that Chemical Bank and Chase Manhattan Bank are in merger talks, but officials at both banks decline comment, neither confirming nor denying the rumours. Nevertheless, sources close to both banks speculate that "where there's smoke, there's generally fire."

The reports were sparked by a Knight-Ridder Financial News article dated July 26 saying